Franchising in Russia Offers Enormous Development Potential

asked about 1 year ago

While several major players have already made quick success of franchising into Russia, smaller companies are realizing the potential that franchising into Russia offers.

Almost twice the size of the U.S. and with a population of around 143 million, Russia sits strategically placed with Europe to its West and Asia to its South. Historically, this massive country has been very closed to the West. However, since the early 1990s, Russia has become more and more open to foreign investment, western brands and international franchising.

“Russia may be relatively new to the concept of international franchise brands but they are a huge market that is gaining momentum all the time,” says Derek Cafferata, CEO and President of franchising experts All State Franchise Finders. “The development potential for international brands to enter into the huge Russian market is quite phenomenal.”

Desire for International Brands

As the country continues to open up, there is an increasing demand for the western brands that are available in Europe and the U.S. Russia’s middle class, which makes up approximately 40 percent of the total population, quickly emerged after the fall of the Soviet Union. This group have a higher education, increased spending power and desire luxury brands, something they desire to purchase within their own country as opposed to having to travel abroad to do so.

The restaurant and fast-food industry continue to lead the way in franchise popularity, closely followed by retail clothing and cosmetics industries. The service sector is another rapidly developing market within Russia.

Large Companies Paving the Way

McDonald’s entered the Russian market back in the 1990s, one of the first major western brands to enter the country. With more than 500 locations and a large number due to open in the near future, they have not looked back. Other major players, like Burger King, Subway, Baskin Robbins, H&M and Zara have also made a huge success with franchising into Russia in recent years. For the likes of Starbucks and Pizza Hut, they are in the process of harnessing the development potential that franchising into Russia offers.

All State Franchise Finders Helping Franchisors Go Global

Derek and his team at All State Franchise Finders help companies of all different sizes, in all different industry sectors to successfully franchise nationally and internationally. Derek has seen increased interest in business owners looking to expand globally into emerging markets like Russia.

“The concept of franchising is a highly respected and acceptable method of doing business in almost every world market,” says Derek. “Anyone looking to grow their business to the next level should take a look at the potential that international franchising ha to offer.”

If you are interested in franchising within the United States or further afield, contact All State Franchise Finders on 1-800-544-2161 or visit their website at All State Franchise Finders – Your Franchise Experts.